(Bloomberg) -- Cevian Capital AB will scrutinize Baloise Holding AG’s upcoming strategy overhaul to decide on whether to ramp up pressure on the Swiss insurer by increasing its stake and potentially install a board member.
Cevian, which is known to push for bold management actions in its target firms, wants Baloise to focus on its core Swiss market and sell other assets, such as its German unit, as well as regional lender Solothurner Bank, according to people familiar with the talks. The strategy update is due Thursday.
It also wants the Basel, Switzerland-based insurer to review costly innovation investments and increase dividends, the people said, asking not to be named discussing confidential matters. Baloise is working with Morgan Stanley and UBS Group AG to defend against Cevian, the people said.
Spokespeople for Baloise, Cevian and UBS declined to comment. Morgan Stanley didn’t reply to Bloomberg’s request for comment ahead of publication.
The Swedish activist investor has built a 9.4% stake in Baloise, according to a Cevian spokesman, making it the insurer’s largest investor ahead of UBS’s 9.3%. The stake building followed a change in Baloise’s bylaws last April, which abolished curbs on investors’ voting rights.
Cevian has a track record in the insurance industry, including the 2020 takeover of British insurer RSA Insurance Group Plc, which was eventually sold to a consortium led by Canada’s Intact Financial Corp. That transaction was lead by Stephen Hester, who is now chairman of Nordea Bank, another business Cevian has invested in.
Cevian also pushed for a breakup at British insurer Aviva Plc. The Swedish activist last year became one of UBS’s largest shareholders.
©2024 Bloomberg L.P.
